Home - Intrepid Capital - QUARTERLY UPDATE · 2018-01-01 · Intrepid Capital Management, Inc. 1400 Marsh Landing Parkway, Suite 106 Jacksonville, FL 32250 INVESTMENT TEAM INVESTMENT

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MARCH 31, 2019

www.intrepidcapital.net

QUARTERLY UPDATE

THE CONSTANT PURSUIT OF VALUE

CONTACT US MAIL: Intrepid Capital Management

1400 Marsh Landing Parkway Suite 106 Jacksonville, FL 32250

PHONE: 904.246.3433

WEB: www.intrepidcapital.net

E-MAIL: Matt Berquist, CFP®, CIMA® [email protected]

Tommy Isaacs [email protected]

TABLE OF CONTENTS 3 President’s Letter

4 Intrepid Small Cap

6 Intrepid Balanced

8 Intrepid Disciplined Value

10 Intrepid Income

12 Key Differentiators

13 Performance Disclosure

Our strategies all share a common investment philosophy, one where we constantly pursue the best value in the markets seeking to achieve superior risk-adjusted returns. As a result, our funds’ holdings are determined using our:

EQUITY INVESTMENT STRATEGY Focusing on companies that we believe are not efficiently priced by the market. To find these opportunities, we search for companies that:

♦ Are market leaders♦ Have a proven record of returning cash flow to shareholders♦ Generate excess free cash flow♦ Carry low debt and have strong balance sheets ♦ Have proven management

FIXED INCOME INVESTMENT STRATEGY Seeks to provide an attractive return in excess of U.S. Treasury bonds while limiting interest rate risk and the possibility of permanent capital impairment. Typically, we focus on corporate bonds, but have the flexibility to explore bank loans, convertibles, and other income generating securities when attractive opportunities are present. We seek companies that:

♦ Are more conservatively financed than the typical leveraged debt issuer♦ Generate predictable free cash flow♦ Own tangible assets

BALANCED INVESTMENT STRATEGY Combining our equity investment strategy and our fixed income investment strategy to allocate assets among stocks, bonds and other fixed income securities based on where we see value.

2

THE CONSTANT PURSUIT OF VALUE

1Q 2019

2

Mark TravisPresident

Chief Executive OfficerIntrepid Capital Management

THE CONSTANT PURSUIT OF VALUE. At Intrepid Capital Management (“Intrepid Capital”), this singular mission directs everything we do, both on behalf of our clients and in how we operate. Our goal is to provide positive absolute returns andrelative outperformance against the benchmark index over a full market cycle. We seek to protect our clients’ capital on the downside while participating in periods of market appreciation.

When it comes to our investment strategy, we follow a disciplined process. In our constant pursuit of value, our sights are set on risk control and long-term growth. We use in-house research, refined over 20 years of practice and perfected during some of the most challenging markets of the century, to determine if a company fits our criteria for investment. It’s simple, but not easy.

PATIENCE. Finding value takes determination and rigorous research. Patience is a rare commodity in the investment advisory business. Markets can be irrational in the short term, and the temptation to diversify for the sake of diversity can derail sound strategies. At Intrepid Capital, we are focused on long-term goals, not short-term results. In our experience, patience pays.

INDEPENDENT THINKING. You won’t find us following the herd. We pride ourselves on independent thinking. We dig deeply and analyze exhaustively. We do not rely on sell-side research. Our extensive and rigorous process for security selection is followed without fail. If an opportunity doesn’t pass our test, we will hold cash until one does. We feel that to be fully invested today assumes there will be no better investment tomorrow.

RISK CONTROL. Simply put, our definition for risk is losing money. In the end, growing and protecting our clients’ capital is our utmost concern, so risk control is critical. We actively manage risk with prudently diversified portfolios, sound strategies and a disciplined process. We try to control risk by ensuring that we understand a business’s operating characteristics, cash flows, and balance sheet, and then waiting to buy shares until we believe there is at least a 20% discount to our fair value estimate. We tend to own shares in businesses with more stable end markets and without highly leveraged balance sheets; ones where management has a substantial stake, there is little debt and the products are indispensable. In our opinion, these can usually be valued with a higher degree of confidence.

Our investment approach focuses on the best value we can find in an attempt to achieve superior risk-adjusted returns. Entrusting us with your hard earned capital is important to us and not a job we take lightly. Thank you for your interest in the Intrepid Capital portfolios.

Sincerely,

Mark F. TravisPresident, CEO

PRESIDENT’S LETTER 1Q 2019MARCH 31, 2019

3

INVESTMENT OBJECTIVE AND PRINCIPAL INVESTMENT STRATEGY

904.246.3433www.intrepidcapital.net

The above information represents averages for the portfolio’s holdings. They will vary over time.

CONTACT US

Intrepid Capital Management, Inc.1400 Marsh Landing Parkway, Suite 106Jacksonville, FL 32250

INVESTMENT TEAM

INVESTMENT DISCIPLINEIndependence.

Integrity.

٠We focus on a business’s value, not its changing stock price.

٠We seek to buy only good businesses at good prices, determined by detailed fundamental analysis.

٠We do not chase performance by buying into “hot” sectors or broad market trends.

٠We have a concentrated portfolio consisting of our best ideas.

٠We do not attempt to match our sector weightings to benchmarks.

٠We are flexible and do not have a fully invested (no cash) mandate.

٠We produce valuations using realistic assumptions.

٠We generate our research internally.

٠We invest our own money alongside our clients’ funds.

٠We will not consider a stock for the portfolio that we would not consider owning ourselves.

PERFORMANCE

PHILOSOPHY

PORTFOLIO CHARACTERISTICS

We are valuation-driven investors. The Small Cap team looks for businesses that are selling for less than what we believe the underlying business is worth. Our valuations are calculated by discounting projected free cash flows and valuing assets. We focus on established companies that have strong balance sheets and that generate consistent free cash flows. We attempt to reduce risk through detailed fundamental analysis of a limited number of holdings and by avoiding businesses that cannot be valued with a high degree of confidence. We employ a long-term investment approach focused on absolute results rather than relative performance. By doing so, we attempt to think independently and avoid investment fads. We sell stocks when they exceed our calculated intrinsic value or when there is a decline in company fundamentals that is not yet reflected in the price of the stock. In certain market conditions when we are unable to find attractive discounts, we may determine that it is appropriate for the Portfolio to hold a significant cash position for an extended period of time. The Portfolio expects that it may maintain substantial cash positions when we determine that such cash holdings, given the risks we believe to be present in the market, are more beneficial to clients than investments in additional securities.

P E R F O R M A N C E

R I S K / R E T U R N — Since Inception 10/31/98

G R O W T H O F $ 1 0 0 , 0 0 0 I N V E S T M E N T

SMALLCAPEQUITY

Value of $100,000, net of investment advisory fees.

Intrepid Small Cap

Ann

ualiz

ed R

etur

ns

Risk (Standard Deviation)

IntrepidSmall Cap

Russell 2000Index

0%

5%

10%

10% 15% 20% 25%

15%

Benchmark*

2.24% -0.95% 1.79% 0.22% 2.75% 8.66% 7.00% 8.85% 8.18%

15.50% 2.87% 13.22% 7.23% 10.87% 15.45% 8.10% 8.48% 8.60%

Current

Annu

alize

d Re

turn

s

QuarterIntrepid Small CapBenchmark*

1 Yr 3 Yrs 5 Yrs 7 Yrs 10 Yrs 15 Yrs 20 Yrs SinceInception

20%

15%

25%

10%

5%

-5%

0%

$400,000

$475,000

$550,000

$625,000

$700,000

$775,000

$325,000

$250,000

$175,000

$100,000

$25,000

10/3

1/98

Oct

-14

Oct

-16

Oct

-18

3/31

/19

Oct

-00

Oct

-02

Oct

-04

Oct

-06

Oct

-08

Oct

-10

Oct

-12

$538,511$497,856

MARCH 31, 2019

INTREPID SMALL CAP 1Q 2019

Matt Parker, CFA, CPAVice PresidentCo-Lead Portfolio ManagerJoined Intrepid Capital in 2014

Joe Van Cavage, CFAVice PresidentCo-Lead Portfolio ManagerJoined Intrepid Capital in 2018

The Intrepid Small Cap Portfolio’s primary objective is long-term capital appreciation. The Portfolio seeks to achieve this objective by investing in common stocks of small capitalization companies.

PORTFOLIO PROFILE

Investment Minimum and Fee Schedule $1M - $10M 1.00% $10M and up Negotiable

Performance data quoted represents past performance and does not guarantee future results. Annual returns are presented net of investment advisory fees and reflect the reinvestment of dividends and other earnings.

Average Market Cap $2,045MMedian Market Cap $777MTrailing P/E 15.9xForward P/E 14.5xDividend Yield 1.1%Price/Book 1.6xPrice/Sales 1.0xROE 7.9%Debt/Capital 25.1%Beta 0.8

4

Investment Style US small-cap value Firm Assets $475 millionStrategy Assets $103 millionInception Date 10/31/1998

Hunter HayesVice PresidentJoined Intrepid Capital in 2017




SMALLCAPEQUITY

Value of $100,000, net of investment advisory fees.

Intrepid Small Cap

Ann

ualiz

ed R

etur

ns


IntrepidSmall Cap

Russell 2000Index

0%

5%

10%

10% 15% 20% 25%

15%

Benchmark*

2.24% -0.95% 1.79% 0.22% 2.75% 8.66% 7.00% 8.85% 8.18%

15.50% 2.87% 13.22% 7.23% 10.87% 15.45% 8.10% 8.48% 8.60%

Current

Annu

alize

d Re

turn

s

QuarterIntrepid Small CapBenchmark*


20%

15%

25%

10%

5%

-5%

0%

$400,000

$475,000

$550,000

$625,000

$700,000

$775,000

$325,000

$250,000

$175,000

$100,000

$25,000

10/3

1/98

Oct

-14

Oct

-16

Oct

-18

3/31

/19

Oct

-00

Oct

-02

Oct

-04

Oct

-06

Oct

-08

Oct

-10

Oct

-12

$538,511$497,856

TOP TEN HOLDINGS (% OF NET ASSETS)

Portfolio holdings and sector allocations are subject to change and are not recommendations to buy or sell any security.

GROWTH OF $100,000 INVESTMENT


Cabot Oil & Gas Corp. 4.6%Protective Insurance Corp. - Class B 4.3%Protector Forsiking ASA 3.4%Skechers U.S.A., Inc. - Class A 3.3%iShares Gold Trust 3.2%Sykes Enterprises, Inc. 3.0%Hallmark Financial Services, Inc. 2.8%SP Plus Corp. 2.6%Amdocs Ltd. 2.5%Potlatchdeltic Corp. 2.2%


Annu

aliz

ed R

etur

n

Intrepid Small Cap

5% 10% 15% 20%0%

5%

10%

15%

Benchmark*

The chart illustrates the performance of a hypothetical $100,000 investment made in the Portfolio since the Portfolio’s inception on 10/31/1998, and performance shown is net of investment advisory fees and reflect the reinvestment of dividends and other earnings.

Past performance is no guarantee of future results.

SECTOR ALLOCATION (% OF NET ASSETS)

RISK /RETURN SINCE INCEPTION 10/31/98

1Q 2019INTREPID SMALL CAP

The Price to Earnings (P/E) Ratio is calculated by dividing current price of the stock by the company's trailing 12 months' earnings per share. The Price to Book (P/B) Ratio compares a stock’s market value to the value of total assets less total liabilities. Standard Deviation is a statistical measure of portfolio risk used to measure variability of total return around an average, over a specified period of time. The greater the standard deviation over the period, the wider the variability or range of returns and hence, the greater the fund's volatility. Beta is a measure of volatility of systematic risk, of a security or a portfolio in comparison to the market as a whole. Cash Flow measures the cash generating capability of a company by adding non-cash charges (e.g. depreciation) and interest expense to pretax income. Median Market Cap is the midpoint of market capitalization (market price multiplied by the number of shared outstanding) of the stocks in a portfolio.

*From January 1, 2019 forward, the benchmark is the Morningstar Small Cap Index. Prior to January 1, 2019, the benchmark was the Russell 2000 Index. Benchmark returns have not been changed retroactively.

MARCH 31, 2019

5

Cash and Cash Equivalents 59.7%Financials 13.9%Energy 5.9%Industrials 5.7%Consumer Discretionary 4.9%Information Technology 3.5%Materials 3.2%Real Estate 2.2%Consumer Staples 1.0%Currency Derivatives 0.0%



CONTACT US


INVESTMENT TEAM

PERFORMANCE


Equity Portfolio

Fixed Income Portfolio

Investment Style US balanced Firm Assets $475 millionStrategy Assets $173 millionInception Date 4/30/1995

MARCH 31, 2019

INTREPID BALANCED 1Q 2019

PORTFOLIO PROFILE


Average Market Cap $6,872MMedian Market Cap $2,565MTrailing P/E 17.0xForward P/E 15.0xDividend Yield 1.8%Price/Book 1.8xPrice/Sales 1.6xROE 13.0%Debt/Capital 36.4%Beta 0.87

Average Maturity 1.03 yearsAverage Duration 0.84 yearsAverage Coupon 5.6%Current Yield 2.9%Average Yield-to-Maturity 1.8%



Integrity.









٠We invest our own money alongside our clients' funds.

٠We will not consider a security for the portfolio that we would not consider owning ourselves.

PHILOSOPHY

The Intrepid Balanced Portfolio’s primary objective is long-term capital appreciation and high current income. The Portfolio seeks to achieve this objective by investing primarily in common stocks of small and mid-capitalization companies and corporate bond securities.

We are valuation-driven investors. The Balanced team searches for businesses that are selling for less than what we believe the underlying business is worth. Our valuations are calculated by discounting projected free cash flows and valuing assets. We focus on established businesses that have strong balance sheets and that generate consistent free cash flows. We attempt to reduce risk through detailed fundamental analysis of a limited number of holdings and by avoiding businesses that cannot be valued with a high degree of confidence. We employ a long-term investment approach focused on absolute results rather than relative performance. By doing so, we attempt to think independently and avoid investment fads. We sell stocks when they exceed our calculated intrinsic value or when there is a decline in fundamentals that is not yet reflected in the price of the stock. The Portfolio’s fixed income investments follow a similar strategy. We perform deep fundamental credit analysis to identify securities with high risk-adjusted potential returns. The Portfolio invests in a wide range of fixed income securities, including corporate bonds, convertibles, and preferred stock, but will typically target the high-yield corporate market. We seek to limit interest rate risk when we are not being compensated to assume it, but fixed income securities will typically have a duration of one to six years at the time of purchase. Duration is a measure of a debt security’s price sensitivity, taking into account a debt security’s cash flows over time. In certain market conditions when we are unable to find attractive discounts, we may determine that it is appropriate for the Portfolio to hold a significant cash position for an extended period of time. The Portfolio expects that it may maintain substantial cash positions when we determine that such cash holdings, given the risks we believe to be present in the market, are more beneficial to clients than investments in additional securities.


6


15%

20%

10%

Intrepid Balanced

Blended Benchmark*

Current

Annu

alize

d Re

turn

s

QuarterIntrepid BalancedBlendedBenchmark*


5%

0%

-5%

-10%

$400,000

$500,000

$600,000

$800,000

$700,000

$300,000

$200,000

$100,000

4/30

/95

Apr-9

7

Apr-9

9Ap

r-01

Apr-0

3

Apr-0

5Ap

r-07

Apr-0

9Apr

-11

Apr-1

3Ap

r-15

Apr-1

73/

31/1

9

5.12% -5.28% 3.76% 1.63% 4.48% 8.45% 6.12% 6.98% 8.33%

8.75% 7.40% 8.68% 7.25% 8.31% 10.45% 6.43% 5.36% 7.62%

$678,792

$579,601

Clay Kirkland, CFAVice PresidentJoined Intrepid Capital in 2012

Mark F. TravisPresident, CEOLead Portfolio ManagerFounded Intrepid Capital in 1994

Matt Parker, CFA, CPAVice PresidentJoined Intrepid Capital in 2014

Hunter HayesVice PresidentJoined Intrepid Capital in 2017

Joe Van Cavage, CFAVice PresidentJoined Intrepid Capital in 2018


15%

20%

10%

Intrepid Balanced

Blended Benchmark*

Current

Annu

alize

d Re

turn

s

QuarterIntrepid BalancedBlendedBenchmark*


5%

0%

-5%

-10%

$400,000

$500,000

$600,000

$800,000

$700,000

$300,000

$200,000

$100,000

4/30

/95

Apr-9

7

Apr-9

9Ap

r-01

Apr-0

3

Apr-0

5Ap

r-07

Apr-0

9Apr

-11

Apr-1

3Ap

r-15

Apr-1

73/

31/1

9

5.12% -5.28% 3.76% 1.63% 4.48% 8.45% 6.12% 6.98% 8.33%

8.75% 7.40% 8.68% 7.25% 8.31% 10.45% 6.43% 5.36% 7.62%

$678,792

$579,601


Portfolio holdings, sector and asset allocations are subject to change and are not recommendations to buy or sell any security.



Berkshire Hathaway, Inc. - Class B 4.3%Protective Insurance Corp. - Class B 3.2%Dollar Tree, Inc. 3.1%Vistra Energy Corp. 3.0%AmerisourceBergen Corp. 2.9%Cabot Oil & Gas Corp. 2.8%Madison Square Garden Co. 2.8%Cheesecake Factory, Inc. 2.6%FRP Holdings, Inc. 2.6%Jefferies Financial Group, Inc. 2.3%

Carrols Restaurant 8.000% Due 5/01/22 2.5%Multi-Color Corp. 6.125% Due 12/01/22 2.1%Caleres, Inc. 6.250% Due 8/15/23 2.1%General Motors Co. 3.501% Due 9/10/21 2.1%Nathan's Famous, Inc. 6.625% Due 11/01/25 2.0%Cable One, Inc. 5.750% Due 6/15/22 2.0%American Outdoor Brands 5.000% Due 8/28/20 2.0%FirstCash, Inc. 5.375% Due 6/01/24 2.0%Actuant Corp. 5.625% Due 6/15/22 1.9%Dynegy, Inc. 7.375% Due 11/01/22 1.9%


Annu

aliz

ed R

etur

n Intrepid Balanced

BlendedBenchmark*

0% 5% 10% 15%0%

5%

10%

15%



SECTOR ALLOCATION

ASSET ALLOCATION

(% OF NET ASSETS)

(% OF NET ASSETS)


1Q 2019INTREPID BALANCED

The Price to Earnings (P/E) Ratio is calculated by dividing current price of the stock by the company's trailing 12 months' earnings per share. The Price to Book (P/B) Ratio compares a stock’s market value to the value of total assets less total liabilities. Standard Deviation is a statistical measure of portfolio risk used to measure variability of total return around an average, over a specified period of time. The greater the standard deviation over the period, the wider the variability or range of returns and hence, the greater the fund's volatility. Beta is a measure of volatility of systematic risk, of a security or a portfolio in comparison to the market as a whole. Cash Flow measures the cash generating capability of a company by adding non-cash charges (e.g. depreciation) and interest expense to pretax income. Median Market Cap is the midpoint of market capitalization (market price multiplied by the number of shared outstanding) of the stocks in a portfolio.

*The benchmark is 60% S&P 500 Index / 40% Bloomberg Barclays Government/Credit 1-5 Yr TR Index. Prior to January 1, 2005, the fixed income portion of the benchmark was the Salomon High Yield Short-Term Index. From January 1, 2005 to January 1, 2019, the fixed income portion of the benchmark was the ICE BofAML US High Yield Index. The Bloomberg Barclays Gov/Credit 1-5 Yr TR Index is more representative of the fixed income portion of the intended strategy. Benchmark returns have been changed retroactively for all periods presented.

MARCH 31, 2019

Equity Holdings

Fixed Income Holdings

Consumer Discretionary 33.3%Financials 17.6%Industrials 12.5%Information Technology 7.6%Real Estate 6.6%Utilities 4.9%Cash and Cash Equivalents 5.1%Healthcare 4.3%Energy 4.2%Consumer Staples 2.0%Communication Services 1.4%Currency Derivatives 0.3%Materials 0.2%

Common Stocks 62.7%Corporate Bonds 28.0%Cash and Cash Equivalents 5.1%Convertible Bonds 3.8%Preferred Stocks 0.1%Currency Derivatives 0.3%

7



CONTACT US


INVESTMENT TEAM

PERFORMANCE




DICIPLINEDVALUEEQUITY

Intrepid Disciplined Value

$550,000

$625,000

$775,000

$700,000

$475,000

$400,000

$325,000

$250,000

$175,000

$100,000

3/31

/96

Mar

-00

Mar

-98

Mar

-02

Mar

-04

Mar

-06

Mar

-08

Mar

-10

Mar

-12

Mar

-14

Mar

-16

Mar

-18

3/31

/19

Benchmark*

6.04% -5.17% 1.93% 2.28% 4.82% 9.27% 5.83% 6.61% 8.18%

14.49% 10.31% 13.79% 11.07% 12.97% 16.00% 8.62% 6.08% 8.72%

CurrentQuarter


15%

20%

10%

5%

-5%

-10%

0%

Annu

alize

d Re

turn

s

IntrepidDisciplinedValue Benchmark*

$609,956

$683,707

MARCH 31, 2019

INTREPID DISCIPLINED VALUE

1Q 2019

Clay Kirkland, CFAVice PresidentLead Portfolio ManagerJoined Intrepid Capital in 2012

PORTFOLIO PROFILE


Investment Style US mid-cap valueFirm Assets $475 millionStrategy Assets $49 millionInception Date 3/31/1996


Average Market Cap $10,617MMedian Market Cap $7,920MTrailing P/E 16.3xForward P/E 15.2xDividend Yield 1.4%Price/Book 2.0xPrice/Sales 1.6xROE 12.4%Debt/Capital 35.9%Beta 0.89



Integrity.










٠We will not consider a stock for the portfolio that we would not consider owning ourselves.

PHILOSOPHYWe are valuation-driven investors. The Disciplined Value team focuses on businesses that are selling below what we believe the underlying businesses are worth. We focus on established businesses that have strong balance sheets and that generate consistent free cash flows. We attempt to reduce risk through detailed fundamental analysis, limiting the number of holdings, and by avoiding businesses that cannot be valued with a high degree of confidence. We employ a long-term investment approach focused on absolute results rather than relative results. By doing so, we attempt to think independently and avoid investment fads. We sell stocks when they exceed our calculated intrinsic value or when there is a decline in fundamentals. As bottom up investors, we focus on security selection, in which the decision to buy or sell a particular security is made independently of the presence or absence of investable opportunities among other securities. Therefore, in certain market conditions in which we are unable to find attractive discounts, we may determine that it is appropriate for the Portfolio to hold a significant cash position for an extended period of time. The Portfolio expects that it may maintain substantial cash positions when we determine that such cash holdings, given the risks we believe to be present in the market, are more beneficial to clients than investment in additional equity securities.

The Intrepid Disciplined Value Portfolio’s primary objective is long-term capital appreciation. The Portfolio seeks to achieve this objective by investing in equity securities of any size capitalization companies. Equity securities in which the Portfolio may invest include common stocks, preferred stocks, convertible preferred stocks, warrants and foreign securities, which include American Depository Receipts (“ADRs”).

8

Matt Parker, CFA, CPAVice PresidentJoined Intrepid Capital in 2014

Joe Van Cavage, CFAVice PresidentJoined Intrepid Capital in 2018



DICIPLINEDVALUEEQUITY

Intrepid Disciplined Value

$550,000

$625,000

$775,000

$700,000

$475,000

$400,000

$325,000

$250,000

$175,000

$100,000

3/31

/96

Mar

-00

Mar

-98

Mar

-02

Mar

-04

Mar

-06

Mar

-08

Mar

-10

Mar

-12

Mar

-14

Mar

-16

Mar

-18

3/31

/19

Benchmark*

6.04% -5.17% 1.93% 2.28% 4.82% 9.27% 5.83% 6.61% 8.18%

14.49% 10.31% 13.79% 11.07% 12.97% 16.00% 8.62% 6.08% 8.72%

CurrentQuarter


15%

20%

10%

5%

-5%

-10%

0%

Annu

alize

d Re

turn

s

IntrepidDisciplinedValue Benchmark*

$609,956

$683,707


Portfolio holdings and sector allocations are subject to change and are not recommendations to buy or sell any security.



Protective Insurance Corp. - Class B 6.1%AmerisourceBergen Corp. 4.8%Laboratory Corp. 4.6%Amdocs Ltd. 4.4%Dollar Tree, Inc. 4.0%Madison Square Garden Co. 3.7%Western Union Co. 3.7%iShares Silver Trust 3.7%Berkshire Hathaway, Inc - Class B 3.6%Teradata Corp. 3.6%


Annu

aliz

ed R

etur

n

IntrepidDisciplined

ValueBenchmark*

10% 15% 20% 25%0%

5%

10%

15%



SECTOR ALLOCATION (% OF NET ASSETS)


1Q 2019INTREPID DISCIPLINED VALUE

The Price to Earnings (P/E) Ratio is calculated by dividing current price of the stock by the company’s trailing 12 months’ earnings per share. The Price to Book (P/B) Ratio compares a stock’s market value to the value of total assets less total liabilities. Standard Deviation is a statistical measure of portfolio risk used to measure variability of total return around an average, over a specified period of time. The greater the standard deviation over the period, the wider the variability or range of returns and hence, the greater the fund’s volatility. Beta is a measure of volatility of systematic risk, of a security or a portfolio in comparison to the market as a whole. Free Cash Flow measures the cash generating capability of a company by subtracting capital expenditures from cash flow from operations. Median Market Cap is the midpoint of market capitalization (market price multiplied by the number of shared outstanding) of the stocks in a portfolio.

*From January 1, 2019 forward, the benchmark is the S&P MidCap 400 Index. Prior to January 1, 2019, the benchmark was the S&P 500 Index. Benchmark returns have not been changed retroactively.

MARCH 31, 2019

Consumer Discretionary 23.9%Financials 21.7%Healthcare 11.9%Information Technology 11.7%Cash and Cash Equivalents 10.0%Materials 5.6%Industrials 5.1%Consumer Staples 4.3%Utilities 2.6%Real Estate 2.0%Energy 1.2%

9



CONTACT US


INVESTMENT TEAM

PERFORMANCE





INCOME

Intrepid Income

2.40% 3.37% 4.66% 2.36% 2.93% 5.36% 4.69% 5.81%

1.62% 3.54% 1.41% 1.57% 1.46% 2.20% 2.70% 3.64%

Current

Annu

alize

d Re

turn

s

Ann

ualiz

ed R

etur

ns


QuarterIntrepid IncomeBloomberg Barclays Gov/Credit1-5 Yr TR*

IntrepidSmall Cap

Russell 2000Index

SinceInception

8%

6%

4%

0%

5%

10%

10% 15% 20% 25%

15%

2%

0%

$250,000

$300,000

$350,000

$200,000

$150,000

$100,000

$50,000

4/30

/99

Apr-0

1

Apr-0

3

Apr-0

5

Apr-0

7

Apr-0

9

Apr-1

1

Apr-1

3

Apr-1

5

Apr-1

73/

31/1

9

Bloomberg Barclays Gov/Cred 1-5 Yr TR*

$308,249

$203,988

1 Yr 3 Yrs 5 Yrs 7 Yrs 10 Yrs 15 Yrs

MARCH 31, 2019

INTREPID INCOME 1Q 2019

PORTFOLIO PROFILE


Average Maturity 2.13 yearsAverage Duration 1.62 yearsAverage Coupon 4.9%Current Yield 4.8%Average Yield-to-Maturity 4.2%

Investment Style US fixed income securitiesFirm Assets $475 millionStrategy Assets $63 millionInception Date 4/30/1999



Integrity.

٠We focus on a business’s credit risk, using detailed fundamental analysis.

٠We do not manage the Portfolio against an index. We are absolute return investors.




٠We utilize realistic assumptions in assessing credit risk.



٠We will not consider a security for the portfolio that we would not consider owning ourselves.

PHILOSOPHY

The Intrepid Income Portfolio’s primary objective is high current income and long-term capital appreciation. The Portfolio seeks to achieve this objective by investing primarily in fixed income securities consisting principally of corporate debt securities, bank debt (including loan assignments and participations), convertible debt, and U.S. government securities. The Portfolio may also invest in the debt of foreign issuers. In addition, the Portfolio may invest in equity securities, consisting principally of dividend-paying common stock or preferred stock.

The Intrepid Income team seeks fixed income securities that offer attractive yields relative to U.S. Treasury securities, while limiting interest rate risk and the possibility of permanent capital impairment. The team focuses on understandable businesses that generate predictable cash flows, in addition to owning tangible assets such as land, buildings, marketable equipment, or mineral reserves. We aim to build a portfolio that will withstand credit crises and liquidity events, striving to own debt securities in businesses that would have the ability to refinance in such an environment. We have historically found the upper and middle tiers of the high-yield corporate debt market to be fertile ground for our search. High yield securities typically have paid high current interest, as well as offer the potential for capital appreciation when purchased at a discount to par value or when favorable company-specific events occur. We perform deep fundamental credit analysis in selecting debt securities for the Portfolio, and the Portfolio’s holdings are not limited by credit quality, sector, or geography. The Portfolio’s investments in debt instruments will not be limited in duration, but typically will be in securities having a duration of one to six years at the time of purchase. In certain market conditions, we may determine that it is appropriate for the Portfolio to hold a significant position in U.S. government securities or the upper tier of the investment grade corporate debt market for an extended period of time. The Portfolio expects that it may maintain these positions when we determine that such holdings, given the risks we believe to be present in the market, are more beneficial to clients than investment in other securities.

Mark F. TravisPresident, CEOCo-Lead Portfolio ManagerFounded Intrepid Capital in 1994

Hunter HayesVice President Co-Lead Portfolio Manager Joined Intrepid Capital in 2017

10





INCOME

Intrepid Income

2.40% 3.37% 4.66% 2.36% 2.93% 5.36% 4.69% 5.81%

1.62% 3.54% 1.41% 1.57% 1.46% 2.20% 2.70% 3.64%

Current

Annu

alize

d Re

turn

s

Ann

ualiz

ed R

etur

ns


QuarterIntrepid IncomeBloomberg Barclays Gov/Credit1-5 Yr TR*

IntrepidSmall Cap

Russell 2000Index

SinceInception

8%

6%

4%

0%

5%

10%

10% 15% 20% 25%

15%

2%

0%

$250,000

$300,000

$350,000

$200,000

$150,000

$100,000

$50,000

4/30

/99

Apr-0

1

Apr-0

3

Apr-0

5

Apr-0

7

Apr-0

9

Apr-1

1

Apr-1

3

Apr-1

5

Apr-1

73/

31/1

9Bloomberg Barclays Gov/Cred 1-5 Yr TR*

$308,249

$203,988

1 Yr 3 Yrs 5 Yrs 7 Yrs 10 Yrs 15 Yrs



Past performance is no guarantee of future results.Weighted Average Maturity is the average of the stated maturity dates of the fixed income securities held in the fund.Modified Duration is a time measure of interest-rate risk exposure that estimates how much a bond, or a bond fund’s price, fluctuates with changes in interest rates. Standard Deviation is a statistical measure of portfolio risk used to measure variability of total return around an average, over a specified period of time. The greater the standard deviation over the period, the wider the variability or range of returns and hence, the greater the fund’s volatility. Cash Flow measures the cash generating capability of a company by adding non-cash charges (e.g. depreciation) and interest expense to pretax income.

*The benchmark is the Bloomberg Barclays Government/Credit 1-5 Yr TR Index. Prior to January 1, 2005, the benchmark was the Salomon High Yield Short-Term Index. From January 1, 2005 to January 1, 2019, the benchmark was the ICE BofAML US High Yield Index. The Bloomberg Barclays Gov/Credit 1-5 Yr TR Index is more representative of the intended strategy. Benchmark returns have been changed retroactively for all periods presented.


Portfolio holdings and asset allocation are subject to change and are not recommendations to buy or sell any security.

Credit Quality Source: Standard & Poor’s


INVISTA Finance 4.250% 10/15/19 4.6%Dollar Tree 3.149% Due 04/17/20 4.4%CDP Financial 4.400% 11/25/19 4.1%Gilead Sciences 1.850% Due 09/20/19 4.1%Omnicom Group/Capital 6.250% Due 07/15/19 3.9%FirstCash 5.375% Due 06/01/24 3.9%Sherwin-Williams Co. 7.250% Due 06/15/19 3.9%Central Garden & Pet 6.125% Due 11/15/23 3.9%Actuant 5.625% Due 06/15/22 3.8%IBM 1.800% Due 05/17/19 3.8%

ASSET ALLOCATION

CREDIT QUALITY

(% OF NET ASSETS)

(% OF NET ASSETS)


1Q 2019INTREPID INCOME

MARCH 31, 2019

11


Annu

aliz

ed R

etur

n Intrepid Income

Bloomberg Barclays Gov/Credit 1-5 Yr TR*

0% 5% 10% 15%0%

3%

6%

9%

Corporate Bonds 90.5%Convertible Bonds 6.0%Preferred Stocks 1.8%Cash and Cash Equivalents 1.7%

AAA 4.0%AA+ 2.2%AA- 3.2%A 7.6%A- 2.8%BBB+ 6.9%BBB 11.5%BBB- 13.0%BB 17.5%BB- 10.9%B 12.0%Not Rated 6.7%Cash and Cash Equivalents 1.7%

12

1Q 2019KEY DIFFERENTIATORS

MARCH 31, 2019

We favor long-term, absolute returns over short-term, relative returns

Defined, systematic and repeatable investment process

Focus on established companies that have strong balance sheets and have generated consistent free cash flows.

Valuations are calculated by discounting projected free cash flows and valuing assets. We do not use relative valuation multiples.

Do not follow the herd on Wall Street

Focus on a business’s value, not its changing stock price

Seek to buy only good businesses at what we view as good prices, determined by detailed fundamental analysis

Do not chase performance by focusing on “hot” sectors or broad market trends

Produce valuations using realistic, internally developed assumptions

Generate our research internally

Invest our own money alongside our clients' funds

Have concentrated portfolios consisting of our best ideas

Do not attempt to match our sector weightings to benchmarks

Flexible and do not have a fully invested (no cash) mandate

Integrity

Absolute Return Orientation

Independence

Seek Uncorrelated Performance

13

1Q 2019PERFORMANCE DISCLOSURE

MARCH 31, 2019

PERFORMANCE REPORT INGSmall Cap ٠ Balanced ٠ Disciplined Value ٠ IncomeIntrepid Capital Management claims compliance with Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS Standards. Intrepid has been independently verified by ACA Performance Services, LLC for the period 12/31/05-12/31/18. Previously, verification was received from The GriggsGroup for the period 12/31/94-12/31/05 and from KPMG for 1998. Verification assesses whether (1) the firm has complied with all the composite construction requirement of the GIPS Standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance with GIPS standards. Verification does not ensure the accuracy of any specific composite presentation. The verification and performance examination reports are available upon request. ٠The “Firm” is defined as Intrepid Capital Management, Inc. (Intrepid), a registered investment advisor with the Securities and Exchange Commission. Registration with the SEC does not imply a certain level of skill or training. Intrepid was founded in 1994 and its primary business activity is providing investment advisory services to a series of open-end mutual funds consisting of five portfolios. In addition, the Firm manages equity, fixed-income, and balanced portfolios for corporate, institutional, and high net worth individuals and families. Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request. Past performance does not guarantee future results.٠Valuations and returns are computed and stated in U.S. Dollars. Results reflect the reinvestment of dividends and other earnings.٠Since 2003 for the Small Cap, Disciplined Value, Income, and Balanced composites, and since inception of the International composite, significant contributions and withdrawals of 20% of an account or greater result in the removal of the account from the composite during the month of the significant cash flow. The account is excluded from the composite until it satisfied Intrepid’s new account inclusion criteria. Additional information regarding significant cash flows is available upon request.٠The three-year annualized ex-post standard deviation measures the variability of the composite and the benchmark returns over the preceding 36-month period. The three-year annualized ex-post standard deviation is not shown for periods when 36 monthly returns are not yet available.

Small CapIntrepid Capital Management | Small Cap CompositeOctober 31, 1998 through December 31, 2018

Data for 1998 is not annualized. Data is for the period October 31, 1998 (inception) through December 31, 1998.

٠The Small Cap Composite has been examined by ACA Performance Services, LLC for the period 12/31/05-12/31/18. ٠The Small Cap Composite primarily invests in small capitalization common stocks. The focus is on securities that are selling at significant discounts to their intrinsic values and possess operating catalysts that are capable of increasing their market values meaningfully in a timely manner. Accounts hold a cash balance that could impact performance and may represent a substantial portion of the composite if a temporary shortage of attractively valued securities exists. Accounts may also hold a small percentage of convertible securities.٠From October 3, 2005 forward, the composite includes all assets in Intrepid’s mutual fund managed to the same strategy.

٠Prior to January 1, 2019, the benchmark was the Russell 2000 Index. From January 1, 2019 forward, the benchmark is the Morningstar Small Cap Index. Benchmark returns have not been changed retroactively and are not covered by the report of independent verifiers. The Morningstar Small Cap Index is widely known and more representative of our intended strategy.٠Securities transactions are accounted for on the trade date.٠Gross-of-fees performance returns are presented before management and custodial fees, but after all trading expenses and withholding taxes. Gross-of-fees fund returns are calculated by grossing up NAV returns by the fund’s actual trailing annual total expense ratio. The standard management fee for small cap accounts is 1.00% per annum on accounts of $3 million to $10 million USD and negotiable on additional assets. The management fee for the corresponding mutual fund is 1.00% per annum. Net returns are calculated by reducing separate account gross returns by our actual quarterly management fee and fund gross returns by a model management fee of 1.00% per annum.٠The Small Cap Composite originated December 31, 2013, and the related investment strategy originated October 31, 1998. A complete list and description of firm composites is available upon request.٠From January 1, 2002 forward, composite dispersion is the asset-weighted standard deviation of account returns represented within the composite for the entire year. Dispersion is not shown for years in which 5 or less portfolios were present for the entire year.٠Effective December 31, 2018, the minimum account size for all composites is $250,000 USD. Between December 31, 2004 and December 31, 2018, the minimum account size for inclusion into the Small Cap Composite was $50,000. Previously, the minimum account size for all composites was $25,000 USD.

BALANCEDIntrepid Capital Management | Balanced CompositeApril 30, 1995 through December 31, 2018

*Data for 1995 is not annualized. Data is for the period April 30, 1995 (inception) through December 31, 1995.

٠The Balanced Composite has been examined by ACA Performance Services, LLC for the period 12/31/05-12/31/18. ٠The Balanced Composite primarily invests in small, mid, and large capitalization common stocks and below-investment grade corporate bonds issued by attractive high-quality businesses worldwide. The equity emphasis is on finding businesses where the current valuation is at a discount to their long-term intrinsic value. The fixed income instruments, which are primarily high-yield debt and short-term in nature, provide attractive returns relative to their risk.٠From January 3, 2005 forward, the composite includes all assets in Intrepid’s mutual fund managed to the same balanced strategy.٠The benchmark is 60% S&P 500 Index / 40% Bloomberg Barclays Government/Credit 1-5 Year TR Index. Prior to January 1, 2005, the fixed income portion of the benchmark was the Salomon High Yield Short-Term Index. From January 1, 2005 to January 1, 2019, the fixed income portion of the benchmark was the ICE BofAML US High Yield Index. Benchmark returns have been changed retroactively for all periods presented and are not covered by the report of independent verifiers. The Bloomberg Barclays Government/Credit 1-5 Yea TR Index is widely known and more representative of our intended strategy. In 2017, the name of the BofA Merrill Lynch High



2015 -4.5 -5.4 -4.4 4.6 14.2 <5 N/A 264.5 34.2

2017 3.6 2.6 14.6 3.9 14.1 <5 N/A 160.5 18.72018 -4.1 -5.0 -11.0 3.6 16.0 <5 N/A 108.3 22.0

Year Gross Net Bench Composite3-Yr

St Dev (%)

CompositeDispersion

(%)

Benchmark3-Yr

St Dev (%)

mark # ofTotal Percent

Return % Return % Return % Portfolios Composite of FirmAssets Assets %($ in Mil.)


St Dev (%)

Benchmark3-Yr

St Dev (%)



CompositeDispersion

(%)

N/AN/AN/A9.7

10.010.49.9

10.810.38.55.54.24.59.0

11.913.211.39.07.25.56.36.35.8

1995* 13.3 12.2 15.9 N/A 12 N/A 3.4 5.51996 16.2 14.5 15.4 N/A 20 3.2 19.0 25.01997 26.5 25.2 22.5 N/A 26 8.1 20.8 31.51998 10.3 10.0 20.5 12.9 32 4.4 28.4 28.11999 3.8 2.8 13.3 13.0 20 5.2 17.1 18.52000 10.0 8.9 -2.0 12.5 30 7.0 21.5 20.42001 14.0 12.5 -3.6 8.7 33 3.5 24.8 27.82002 0.8 -0.5 -10.5 9.6 56 1.2 41.4 8.82003 24.5 22.9 18.1 8.8 81 2.4 72.6 12.62004 12.9 11.6 7.3 8.1 73 1.2 71.6 13.22005 2.7 1.4 3.6 6.6 51 0.6 96.4 17.72006 14.7 13.4 11.1 5.7 51 2.1 102.8 23.42007 3.8 2.7 6.3 5.4 42 2.2 101.4 25.22008 -15.7 -16.6 -22.0 10.9 40 0.8 86.7 27.12009 32.7 31.3 17.9 12.6 18 1.8 133.1 21.12010 16.9 15.7 11.0 13.6 10 0.5 305.7 25.22011 3.9 2.8 2.8 10.2 14 0.4 355.5 28.92012 12.4 11.2 10.4 9.5 12 0.5 425.1 31.12013 16.2 15.0 18.6 8.3 10 0.2 472.4 33.32014 6.6 5.6 8.7 6.4 10 0.3 477.8 37.82015 -5.3 -6.3 1.4 7.2 7 N/A 299.3 38.72016 16.5 15.3 7.8 7.5 9 0.5 417.9 46.82017 9.6 8.5 13.2 7.2 9 0.2 442.8 51.62018 -12.1 -13.0 -1.8 7.3 6.3 6 0.1 183.8 37.4

2016 9.4 8.3 21.3 4.1 16.0 <5 N/A 245.2 27.4

1998* 5.4 5.0 11.8 N/A N/A <5 N/A 1.1 1.11999 -8.0 -8.6 21.3 N/A N/A <5 N/A 4.7 5.12000 18.8 17.9 -3.0 N/A N/A <5 2.0 4.1 3.92001 21.7 20.5 2.5 12.5 23.5 5 .5 7.4 8.32002 9.9 8.8 -20.5 11.3 24.7 10 .1 9.6 2.12003 18.2 16.9 47.3 11.7 21.9 17 .9 19.6 3.42004 14.1 12.8 18.3 9.8 19.2 21 0.5 11.5 2.12005 4.6 3.4 4.6 8.1 15.3 21 0.5 19.7 3.62006 13.2 11.8 18.4 6.7 13.9 23 1.0 22.1 5.02007 9.8 8.6 -1.6 6.1 13.4 19 1.3 24.7 6.12008 -5.3 -6.4 -33.8 9.2 20.1 20 0.6 48.7 15.22009 40.6 39.1 27.2 15.3 25.2 5 N/A 305.4 48.52010 20.7 19.5 26.9 17.4 28.1 6 N/A 728.9 60.02011 3.1 2.1 -4.2 16.7 25.3 5 N/A 687.9 55.92012 10.3 9.2 16.4 11.7 20.5 5 N/A 728.4 53.42013 13.5 12.3 38.8 8.2 16.7 5 N/A 719.3 50.72014 2.7 1.7 4.9 5.1 13.3 <5 N/A 566.3 44.8



2015 -4.5 -5.4 -4.4 4.6 14.2 <5 N/A 264.5 34.2

2017 3.6 2.6 14.6 3.9 14.1 <5 N/A 160.5 18.72018 -4.1 -5.0 -11.0 3.6 16.0 <5 N/A 108.3 22.0


St Dev (%)

CompositeDispersion

(%)

Benchmark3-Yr

St Dev (%)




St Dev (%)

Benchmark3-Yr

St Dev (%)



CompositeDispersion

(%)

N/AN/AN/A9.7

10.010.49.9

10.810.38.55.54.24.59.0

11.913.211.39.07.25.56.36.35.8

1995* 13.3 12.2 15.9 N/A 12 N/A 3.4 5.51996 16.2 14.5 15.4 N/A 20 3.2 19.0 25.01997 26.5 25.2 22.5 N/A 26 8.1 20.8 31.51998 10.3 10.0 20.5 12.9 32 4.4 28.4 28.11999 3.8 2.8 13.3 13.0 20 5.2 17.1 18.52000 10.0 8.9 -2.0 12.5 30 7.0 21.5 20.42001 14.0 12.5 -3.6 8.7 33 3.5 24.8 27.82002 0.8 -0.5 -10.5 9.6 56 1.2 41.4 8.82003 24.5 22.9 18.1 8.8 81 2.4 72.6 12.62004 12.9 11.6 7.3 8.1 73 1.2 71.6 13.22005 2.7 1.4 3.6 6.6 51 0.6 96.4 17.72006 14.7 13.4 11.1 5.7 51 2.1 102.8 23.42007 3.8 2.7 6.3 5.4 42 2.2 101.4 25.22008 -15.7 -16.6 -22.0 10.9 40 0.8 86.7 27.12009 32.7 31.3 17.9 12.6 18 1.8 133.1 21.12010 16.9 15.7 11.0 13.6 10 0.5 305.7 25.22011 3.9 2.8 2.8 10.2 14 0.4 355.5 28.92012 12.4 11.2 10.4 9.5 12 0.5 425.1 31.12013 16.2 15.0 18.6 8.3 10 0.2 472.4 33.32014 6.6 5.6 8.7 6.4 10 0.3 477.8 37.82015 -5.3 -6.3 1.4 7.2 7 N/A 299.3 38.72016 16.5 15.3 7.8 7.5 9 0.5 417.9 46.82017 9.6 8.5 13.2 7.2 9 0.2 442.8 51.62018 -12.1 -13.0 -1.8 7.3 6.3 6 0.1 183.8 37.4

2016 9.4 8.3 21.3 4.1 16.0 <5 N/A 245.2 27.4

1998* 5.4 5.0 11.8 N/A N/A <5 N/A 1.1 1.11999 -8.0 -8.6 21.3 N/A N/A <5 N/A 4.7 5.12000 18.8 17.9 -3.0 N/A N/A <5 2.0 4.1 3.92001 21.7 20.5 2.5 12.5 23.5 5 .5 7.4 8.32002 9.9 8.8 -20.5 11.3 24.7 10 .1 9.6 2.12003 18.2 16.9 47.3 11.7 21.9 17 .9 19.6 3.42004 14.1 12.8 18.3 9.8 19.2 21 0.5 11.5 2.12005 4.6 3.4 4.6 8.1 15.3 21 0.5 19.7 3.62006 13.2 11.8 18.4 6.7 13.9 23 1.0 22.1 5.02007 9.8 8.6 -1.6 6.1 13.4 19 1.3 24.7 6.12008 -5.3 -6.4 -33.8 9.2 20.1 20 0.6 48.7 15.22009 40.6 39.1 27.2 15.3 25.2 5 N/A 305.4 48.52010 20.7 19.5 26.9 17.4 28.1 6 N/A 728.9 60.02011 3.1 2.1 -4.2 16.7 25.3 5 N/A 687.9 55.92012 10.3 9.2 16.4 11.7 20.5 5 N/A 728.4 53.42013 13.5 12.3 38.8 8.2 16.7 5 N/A 719.3 50.72014 2.7 1.7 4.9 5.1 13.3 <5 N/A 566.3 44.8


MARCH 31, 2019

14

Yield Index was changed to the ICE BofAML US High Yield Index. Monthly returns for the S&P 500 and Bloomberg Barclays Government/Credit 1-5 Year TR Index are multiplied by their respective benchmark weighting, and the benchmark is rebalanced monthly.٠Securities transactions are accounted for on the trade date and accrual accounting is used for interest.٠Gross-of-fees performance returns are presented before management and custodial fees, but after all trading expenses and withholding taxes. Gross-of-fees fund returns are calculated by grossing up NAV returns by the fund’s actual trailing annual total expense ratio. The standard management fee for balanced accounts is 1.00% per annum on accounts of $3 million to $10 million USD and negotiable on additional assets. The management fee for the corresponding mutual fund is 1.00% per annum. Net returns are calculated by reducing separate account gross returns by our actual quarterly management fee and fund gross returns by a model management fee of 1.00% per annum.٠The Balanced Composite originated December 31, 2013, and the related investment strategy originated April 30, 1995. A complete list and description of firm composites is available upon request.٠Composite dispersion is the asset-weighted standard deviation of account returns represented within the composite for the entire year. Dispersion is not shown for years in which 5 or less portfolios were present for the entire year.٠Effective December 31, 2018, the minimum account size for all composites is $250,000 USD. From December 31, 2004 to December 31, 2018, the minimum account size for inclusion into the Balanced Composite was $200,000 USD. Previously, the minimum account size for all composites was $25,000 USD.

DISCIPLINED VALUEIntrepid Capital Management | Disciplined Value CompositeJune 30, 1996 through December 31, 2018

*Data for 1996 is not annualized. Data is for the period June 30, 1996 (inception) through December 31, 1996.

٠The Disciplined Value Composite has been examined by ACA Performance Services, LLC for the period 12/31/05 – 12/31/18. ٠The Disciplined Value Composite invests in small, mid, and large capitalization common stocks. The primary emphasis is on finding attractive high-quality businesses having above average earnings, returns on capital, and returns on equity, where the current valuation is at a discount to their long-term intrinsic value. Prior to January 1, 2002, the Disciplined Value Composite included all dedicated, fully discretionary equity portfolios. From January 1, 2002 to December 31, 2009, the Disciplined Value Composite included all dedicated, fully discretionary equity portfolios, as well as the equity segment of Balanced Composite portfolios. Cash was allocated to the carve-out based on beginning-of-period asset class weightings. The carve-out percentage of the composite is stated as of December 31 of each year. From January 1, 2010 to June 30, 2010, the Disciplined Value Composite included all dedicated, fully discretionary equity portfolios, as well as equity sub-portfolios of Balanced Composite portfolios with asset weighted cash from Balanced Composite portfolios allocated to the sub- portfolios. From July 1, 2010 forward, the composite no longer included sub-portfolios.٠From November 7, 2007 forward, the composite includes all assets in Intrepid’s mutual fund managed to the same strategy.

٠Prior to January 1, 2019, the benchmark was the S&P 500 Index. From January 1, 2019 forward, the benchmark is the S&P MidCap 400 Index. Benchmark returns have not been changed retroactively and are not covered by the report of independent verifiers. The S&P MidCap 400 Index is widely known and more representative of our intended strategy.٠Securities transactions are accounted for on the trade date.٠Gross-of-fees performance returns are presented before management and custodial fees, but after all trading expenses and withholding taxes. Gross-of-fees fund returns are calculated by grossing up NAV returns by one-twelfth of the fund’s actual trailing annual total expense ratio. The standard management fee for equity accounts is 1.00% per annum on accounts of $3 million to $10 million USD and negotiable on additional assets. The management fee for the corresponding mutual fund is 1.00% per annum. Net returns are calculated by reducing separate account gross returns by our actual quarterly management fee and fund gross returns by a model management fee of 1.00% per annum.٠The Disciplined Value Composite originated December 31, 2013, and the related investment strategy originated March 31, 1996. A complete list and description of firm composites is available upon request.٠From January 1, 2002 forward, composite dispersion is the asset-weighted standard deviation of account returns represented within the composite for the entire year. Dispersion is not shown for years in which 5 or less portfolios were present for the entire year.٠Effective December 31, 2018, the minimum account size for all composites is $250,000 USD. From December 31, 2004 to December 31, 2018, the minimum account size for inclusion into the Disciplined Value Composite was $50,000. Previously, the minimum account size for all composites was $25,000 USD.

INCOMEIntrepid Capital Management | Income CompositeApril 30, 1999 through December 31, 2018

*Data for 1999 is not annualized. Data is for the period April 30, 1999 (inception) through December 31, 1999.

٠The Income Composite has been examined by ACA Performance Services, LLC for the period 12/31/05 – 12/31/18. ٠The Income Composite primarily invests in below-investment grade corporate bonds and other high yield securities issued by attractive businesses worldwide. These securities are usually short-term in nature and provide attractive returns relative to their risk. Prior to January 1, 2002, the Income Composite included all dedicated, fully discretionary high yield portfolios. From January 1, 2002 to December 31, 2009, the Income Composite included all dedicated, fully discretionary high yield portfolios, as well as the fixed income segment of Balanced Composite portfolios. Cash was allocated to the carve-out based on beginning- of-period asset class weightings. The carve-out percentage of the composite is stated as of December 31 of each year. From January 1, 2010 to May 31, 2014, the Income Composite included all dedicated, fully discretionary high yield portfolios, as well as high yield sub- portfolios of Balanced Composite portfolios with asset weighted cash from Balanced Composite portfolios allocated to the sub-portfolios. From June 1, 2014 forward, the composite no longer included sub-portfolios.٠From July 2, 2007 forward, the composite includes all assets in Intrepid’s mutual fund managed to the same strategy.٠Prior to January 1, 2005, the benchmark was the Salomon High Yield Short-Term Index. From January 1, 2005 to January 1, 2019, the benchmark was the ICE BofAML US High Yield Index.

DISCIPLINED VALUEIntrepid Capital Management | Disciplined Value CompositeMarch 31, 1996 through December 31, 2017



St Dev (%)

Carve-out% of

Composite

Benchmark3-Yr

St Dev (%)



CompositeDispersion

(%)

1996* 18.7 17.4 16.7 N/A N/A 16 N/A 3.9 5.1 N/A1997 29.3 27.4 33.3 N/A N/A 22 6.5 8.0 12.2 N/A1998 17.4 16.4 28.6 N/A N/A 41 3.2 11.8 11.7 N/A1999 -1.9 -3.1 21.0 16.1 16.8 16 7.7 5.7 6.1 N/A2000 14.0 13.0 -9.2 16.7 17.7 12 1.6 3.1 2.9 N/A2001 15.8 14.6 -11.9 13.2 16.9 15 3.3 4.7 5.2 N/A2002 -4.9 -6.1 -22.2 15.3 18.8 76 1.4 25.3 5.4 76.32003 21.0 19.5 28.6 14.5 18.3 100 3.1 43.5 7.5 81.82004 14.7 13.3 10.9 13.6 15.1 92 1.9 47.2 8.7 82.42005 4.1 2.8 4.9 10.2 9.2 68 0.9 50.9 9.4 81.02006 16.1 14.7 15.8 7.6 6.9 65 1.1 53.9 12.2 77.62007 1.3 0.1 5.5 7.3 7.8 49 1.0 50.9 12.7 76.72008 -20.2 -21.2 -37.0 14.6 15.3 55 1.8 44.2 13.8 66.62009 32.6 31.0 26.5 17.7 19.9 19 3.4 42.9 6.8 50.92010 18.4 17.1 15.1 19.0 22.2 <5 N/A 34.3 2.8 N/A2011 0.9 -0.1 2.1 15.1 19.0 <5 N/A 42.9 3.5 N/A2012 12.1 10.9 16.0 12.6 15.3 <5 N/A 37.0 2.7 N/A2013 20.1 18.9 32.4 10.5 12.1 <5 N/A 46.8 3.3 N/A2014 9.2 8.1 13.7 6.8 9.1 <5 N/A 48.2 3.8 N/A2015 -2.5 -3.4 1.4 6.5 10.6 <5 N/A 45.2 5.8 N/A2016 13.4 12.3 12.0 6.5 10.7 <5 N/A 49.1 5.5 N/A


St Dev (%)

Carve-out% of

Composite

Benchmark3-Yr

St Dev (%)



2015 -0.4 -1.1 1.0 2.4 <5 N/A 79.2 10.2 N/A2016 9.4 8.5 1.6 3.1 <5 N/A 79.8 8.9 N/A2017 4.7 3.9 1.3 2.7 <5 N/A 76.2 8.9 N/A

CompositeDispersion

(%)

2018 1.4 0.7 1.4 2.1 <5 N/A 63.9 13.0 N/A

2017 8.1 7.3 21.8 6.2 10.1 <5 N/A 37.9 4.4 N/A2018 -12.6 -13.5 -4.4 7.5 11.0 <5 N/A 25.5 5.2 N/A

1999* -1.2 -2.0 1.4 N/A <5 N/A 0.7 0.7 N/A2000 2.2 1.1 8.9 N/A 5 N/A 29.7 28.2 N/A2001 18.8 18.1 9.0 N/A <5 3.7 15.6 17.5 N/A2002 5.5 4.7 8.1 6.4 62 1.9 39.5 8.4 56.12003 27.2 26.2 3.4 6.4 89 2.5 64.7 11.2 57.02004 11.3 10.4 1.9 5.6 81 1.3 60.3 11.1 56.12005 0.1 -0.7 1.4 5.5 55 1.0 46.8 8.6 58.92006 9.9 9.0 4.2 4.4 53 1.6 33.4 7.6 91.72007 4.3 3.5 7.3 3.8 42 0.3 52.4 13.0 52.42008 -10.1 -10.7 5.1 6.8 40 0.7 53.1 16.6 47.32009 29.3 28.3 4.6 8.1 18 2.2 80.9 12.9 22.52010 7.4 6.6 4.1 8.0 9 0.2 83.7 6.9 N/A2011 5.8 5.0 3.1 4.4 13 0.1 100.0 8.1 N/A2012 7.1 6.2 2.2 2.0 12 0.1 113.5 8.3 N/A2013 4.4 3.6 0.3 1.9 12 0.1 118.2 8.3 N/A2014 -0.1 -0.8 1.4 1.9 <5 N/A 96.9 7.7 N/A

N/AN/AN/A2.22.62.72.31.91.72.42.52.51.61.31.21.11.21.31.31.3

DISCIPLINED VALUEIntrepid Capital Management | Disciplined Value CompositeMarch 31, 1996 through December 31, 2017



St Dev (%)

Carve-out% of

Composite

Benchmark3-Yr

St Dev (%)



CompositeDispersion

(%)

1996* 18.7 17.4 16.7 N/A N/A 16 N/A 3.9 5.1 N/A1997 29.3 27.4 33.3 N/A N/A 22 6.5 8.0 12.2 N/A1998 17.4 16.4 28.6 N/A N/A 41 3.2 11.8 11.7 N/A1999 -1.9 -3.1 21.0 16.1 16.8 16 7.7 5.7 6.1 N/A2000 14.0 13.0 -9.2 16.7 17.7 12 1.6 3.1 2.9 N/A2001 15.8 14.6 -11.9 13.2 16.9 15 3.3 4.7 5.2 N/A2002 -4.9 -6.1 -22.2 15.3 18.8 76 1.4 25.3 5.4 76.32003 21.0 19.5 28.6 14.5 18.3 100 3.1 43.5 7.5 81.82004 14.7 13.3 10.9 13.6 15.1 92 1.9 47.2 8.7 82.42005 4.1 2.8 4.9 10.2 9.2 68 0.9 50.9 9.4 81.02006 16.1 14.7 15.8 7.6 6.9 65 1.1 53.9 12.2 77.62007 1.3 0.1 5.5 7.3 7.8 49 1.0 50.9 12.7 76.72008 -20.2 -21.2 -37.0 14.6 15.3 55 1.8 44.2 13.8 66.62009 32.6 31.0 26.5 17.7 19.9 19 3.4 42.9 6.8 50.92010 18.4 17.1 15.1 19.0 22.2 <5 N/A 34.3 2.8 N/A2011 0.9 -0.1 2.1 15.1 19.0 <5 N/A 42.9 3.5 N/A2012 12.1 10.9 16.0 12.6 15.3 <5 N/A 37.0 2.7 N/A2013 20.1 18.9 32.4 10.5 12.1 <5 N/A 46.8 3.3 N/A2014 9.2 8.1 13.7 6.8 9.1 <5 N/A 48.2 3.8 N/A2015 -2.5 -3.4 1.4 6.5 10.6 <5 N/A 45.2 5.8 N/A2016 13.4 12.3 12.0 6.5 10.7 <5 N/A 49.1 5.5 N/A


St Dev (%)

Carve-out% of

Composite

Benchmark3-Yr

St Dev (%)



2015 -0.4 -1.1 1.0 2.4 <5 N/A 79.2 10.2 N/A2016 9.4 8.5 1.6 3.1 <5 N/A 79.8 8.9 N/A2017 4.7 3.9 1.3 2.7 <5 N/A 76.2 8.9 N/A

CompositeDispersion

(%)

2018 1.4 0.7 1.4 2.1 <5 N/A 63.9 13.0 N/A

2017 8.1 7.3 21.8 6.2 10.1 <5 N/A 37.9 4.4 N/A2018 -12.6 -13.5 -4.4 7.5 11.0 <5 N/A 25.5 5.2 N/A

1999* -1.2 -2.0 1.4 N/A <5 N/A 0.7 0.7 N/A2000 2.2 1.1 8.9 N/A 5 N/A 29.7 28.2 N/A2001 18.8 18.1 9.0 N/A <5 3.7 15.6 17.5 N/A2002 5.5 4.7 8.1 6.4 62 1.9 39.5 8.4 56.12003 27.2 26.2 3.4 6.4 89 2.5 64.7 11.2 57.02004 11.3 10.4 1.9 5.6 81 1.3 60.3 11.1 56.12005 0.1 -0.7 1.4 5.5 55 1.0 46.8 8.6 58.92006 9.9 9.0 4.2 4.4 53 1.6 33.4 7.6 91.72007 4.3 3.5 7.3 3.8 42 0.3 52.4 13.0 52.42008 -10.1 -10.7 5.1 6.8 40 0.7 53.1 16.6 47.32009 29.3 28.3 4.6 8.1 18 2.2 80.9 12.9 22.52010 7.4 6.6 4.1 8.0 9 0.2 83.7 6.9 N/A2011 5.8 5.0 3.1 4.4 13 0.1 100.0 8.1 N/A2012 7.1 6.2 2.2 2.0 12 0.1 113.5 8.3 N/A2013 4.4 3.6 0.3 1.9 12 0.1 118.2 8.3 N/A2014 -0.1 -0.8 1.4 1.9 <5 N/A 96.9 7.7 N/A

N/AN/AN/A2.22.62.72.31.91.72.42.52.51.61.31.21.11.21.31.31.3

From January 1, 2019 forward, the benchmark is the Bloomberg Barclays Government/Credit 1-5 Year TR Index. Benchmark returns have been changed retroactively for all periods presented and are not covered by the report of independent verifiers. The Bloomberg Barclays Government/Credit 1-5 Year TR Index is widely known and more representative of our intended strategy. In 2017, the name of the BofA Merrill Lynch High Yield Index was changed to the ICE BofAML US High Yield Index.٠Securities transactions are accounted for on the trade date and accrual accounting is used for interest.٠Gross-of-fees performance returns are presented before management and custodial fees, but after all trading expenses and withholding taxes. Gross-of-fees fund returns are calculated by grossing up NAV returns by the fund’s actual trailing annual total expense ratio. The standard management fee for high yield accounts is 0.75% per annum, and the management fee for the corresponding mutual fund is 0.75% per annum. Net returns are calculated by reducing separate account gross returns by our actual quarterly management fee and fund gross returns by a model management fee of 0.75% per annum.٠The Income Composite originated on December 31, 2013, and the related investment strategy originated April 30, 1999. A complete list and description of firm composites is available upon request.٠Composite dispersion is the asset-weighted standard deviation of account returns represented within the composite for the entire year. Dispersion is not shown for years in which five or less portfolios were present for the entire year.٠Effective December 31, 2018, the minimum account size for all composites is is $250,000 USD. From December 31, 2004 to December 31, 2018, the minimum account size for inclusion into the Income Composite was $100,000. Previously, the minimum account size for all composites was $25,000 USD.


MARCH 31, 2019

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